When a block of transactions is created from a crypto transactions miners have to process it using a mathematical formula and verify its correct before passing it on, known as a hash. This decentralized is an advantage for security.
Because each block’s hash is used to help produce the hash for the next block any tampering with the subsequence essentially invalidating the entire transaction.
This mining occurs using software written specifically to mine these blocks with specially designed chips. The faster these chips process, and the greater the throughput they have to solve these mathematical problems equals a higher the probability of being reward the coins.
That’s a very basic overview of the mining process. Another factor is how many coins are available to be mined in total. This is a set and limited supply, which is predetermined by the designer. As more coins are mined the reward is generally decreased. This makes it more expensive to produce and affects the supply/demand curve in terms of its price, all other factors being equal.
Another factor related to the mining process is the difficulty level actually increases as more miners enter that coins mining market.
Here's the Game Changer:
I believe something overlooked in the cryptocurrency industry is the Introduction of Quantum Computing, and their effect on mining profitability. What I’m suggesting is we are still at an early stage of our industry’s development, and while our computing processors are advancing they have not peaked in performance output.
We’ve yet to see what happens when a super Quantum Computer becomes involved in crypto mining!
Is it possible that a Quantum computer could literally corner the market with a given coin because of its advanced processing power?
When you open the door to their concept of Parallel Universes, scientists envision the possibility of entering and then retrieveing assets from a parallel universe.! I know its an abstract concept, but listen to video of Geordie Rose who's an expert in Quantum computing below.
Additionally is it possible a Quantum Computer could become self-aware and create its own existence in a parallel dimension, and then retrieve assets here?
Or as Mr Rose postulates, that within 15 years Quantum computers will be more advanced than humans in every respect.
These are some of the topics one needs to consider as technology advances. As elaborated by Geordie Rose, Founder of D-Wave